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TAX CHANGES
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Later this month we meet with the Tax Department on E-911 tax that retailers must soon collect to discuss the guidelines for retailers. |
| FIRE CODE IMPACTING RETAILERS
The Codes and Standards Committee for the Board of Housing and Community Development held a hearing on May 10, 2010 to reach consensus on several items of interest to VRMA members.
Out of the two proposals put forth regarding stores where upholstered furniture is present, only one proposal was passed; and it removed the requirement that sprinklers be in place where upholstered furniture is displayed and sold. It maintains the current requirement that stores exceeding 12,000 square feet require sprinklers.
The sprinkler threshold for restaurants with an ABC license keeps the sprinkler threshold at 300 occupants rather than lowering the threshold to 100 occupants.
The restaurant grease hood cleaning schedule will require posting near the range for the fire marshal. The language regarding the schedule needing to be written and approved was stricken out, therefore nothing will need to be submitted to the fire marshal. | |
Make sure you are clear on the impact of the "Card Act". You must comply by August 22, 2010. It reaches further than most realize, so please take some time with this one.
CARD Act - Be aware
On March 23, 2010, the Federal Reserve Board issued a much-anticipated "Final Rule" implementing Title IV of the CARD Act. The CARD Act restricts most fees and expiration dates on prepaid cards. The new law included six exemptions for the requirements. This Advisory, the first of several Advisories on the CARD Act, focuses on one of the exemptions - for "loyalty, award, or promotional" cards, codes and other devices. Qualifying Loyalty/Promo Cards are not subject to the fee or expiration date restrictions if they include the required disclosures. Many companies may be surprised by the disclosure requirements.
Generally, the CARD Act restricts fees for dormancy, inactivity and services on gift certificates, store gift cards and general-use prepaid cards. It permits one fee per month and only after there has been activity during the preceding 12 months. It also prohibits Cards from expiring in less than 5 years from the date the covered Card was issued or the date funds were last loaded, whichever is later. Covered Cards include those: 1) issued on a prepaid basis primarily for personal, family or household purposes to a consumer in a specified amount that may or may not be reloaded in exchange for payment: and 2) redeemable at one or more affiliated/unaffiliated merchants for goods/services in exchange for payment, or usable at ATMs. It is important to note there is no requirement for a plastic card to be used-Cards include "cards, codes and other device."
Examples of Loyalty, Award and Promotional Programs are:
- Merchant Loyalty/Retention preograms
- Rebate programs
- Sweepstakes/Contest programs
- Discounts or coupons
- Referral programs
- Incentive Programs for employees
- Charitable/Community Relations Program
Contact VRMA (804-649-0789) for more information.
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